Information for Employers
Should I offer a "Salary Sacrifice" or an "Addition-to-Salary" scheme?
In a Salary Sacrifice scheme, you agree with each employee that their salary will be reduced in exchange for receiving KiddiVouchers. The value of KiddiVouchers they receive will be equal to the salary that has been given up.
Salary Sacrifice schemes save employers money, because no national insurance contributions are payable on the amount of salary that is sacrificed or on the KiddiVouchers which are paid in lieu.
Click here to learn more about setting up a Salary Sacrifice scheme.
If you want to use KiddiVouchers to provide a benefit to your employees without setting up a Salary Sacrifice scheme, you can offer KiddiVouchers in addition to salary. Although no NI is payable on the KiddiVouchers, this option is more expensive because it increases the total amount of money that you pay your employees.
If you are a small company, and in particular if you are a family company or if you are your company's only employee, then Addition-to-Salary schemes can provide a tax-efficient means of distributing your company's profits.
Call us on 0800 612 6110 or click here to set up a scheme.